Analysis Of Merger Goodwill Measurement

Since 2014,with the introduction of a series of supporting policies of the China Securities Regulatory Commission,mergers and acquisitions have set off a boom in the A-share market,and the blowout development of mergers and acquisitions has led to an exponential growth in the scale of A-share goodwill.At the same time,the scale of goodwill impairment It has also rapidly climbed,and the share of impairment in goodwill has increased on a large scale.During the 2018 annual report,dozens of listed companies issued a huge performance loss notice or Daifuku’s downgrade performance notice due to the impairment of goodwill.A storm of goodwill occurred on the A shares,and the loss of goodwill impairment exceeded 160 billion in the same year.The issue of measurement has received widespread attention.The case analysis of the measurement of goodwill is helpful to study the problems and causes in the process of confirmation and measurement of goodwill in practice,and take targeted measures to reduce risks.This article starts from the existing relevant literature and through reviewing the relevant literature works,after combing the evolution of goodwill,the nature of goodwill,the measurement of goodwill and the influencing factors,this is used as the theoretical basis for the study of goodwill.This paper will be based on the huge amount of goodwill impairment in the short term after the acquisition of Dongfang Precision,exploring the causes of goodwill impairment,starting from the analysis of the goodwill valuation process at the time of merger and acquisition,focusing on the problems of the valuation process and adjusting and adjusting according to the actual data Forecasting assumptions are revaluated and compared,then explore the factors that affect the valuation of goodwill,and then explore the follow-up measurement process of the goodwill formed by M & A Pride by Dongfang Precision,and the time and amount of impairment of goodwill The rationality was analyzed.This study finds that the measurement of merged goodwill is affected by factors such as share-based payment methods,management overconfidence,and high performance on gambling.The result of merger goodwill using the cut difference method is only the merger price difference,which includes more non-commercial The value of goodwill does not reflect the essence of goodwill.The high value of goodwill lacks core support,which is the source of subsequent goodwill impairment.In practice,the use of enterprise value assessment for goodwill measurement can not change the situation of the merger price difference,because the enterprise value assessment has a large uncertainty,the result is easy to be manipulated,and is still affected by the factors affecting the transaction consideration.After the merger,the acquired company’s industry policy declines,the market is squeezed,integration difficulties,and performance fraud risks all cause the merger goodwill to face greater impairment risks.However,due to untimely impairment provision and unreasonable amount of impairment,Dongfang Precision caused huge impairment of goodwill and caused greater losses to investors.This study found that it has certain practical guiding significance for the improvement of the initial measurement method of goodwill,the improvement of the accounting standards for goodwill impairment,the exploration of the subsequent measurement method of goodwill,and the disclosure and presentation of goodwill-related information.